MARKETING MANAGEMENT 12th edition

Chapter 4 Conducting Marketing Research and Forecasting Demand

The Marketing Research

Consumer & Market Knowledge Marketing Research is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company.

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The Marketing Research Process

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Marketing Research System

The Marketing Research Process

Step 1: Define the Problem, the Decision Alternatives, and the Research Objectives
Must be careful not to define the problem too broadly or to narrowly. Example: Offering New First Class Service

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Marketing Research System

The Marketing Research Process

Step 2: Develop the Research Plan

Data Sources secondary/ primary data Research Approaches

Observational research Focus group research Survey research Behavioral data purchasing behaviour/ direct marketing Experimental research to capture cause and effects relationship/ can explain the results.

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Marketing Research System

Research Instruments
Questionnaires closed-end/ opened questionnaires Quantitative measures unstructured measurement approaches. Mechanical Devices technology media/ diaries

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Marketing Research System

Closed-end Questions

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Marketing Research System

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Marketing Research System

Open-end Questions

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Marketing Research System

Sampling Plan
Sampling unit Who is to be surveyed? Sample size How many people should be surveyed? Sampling procedure How should the respondents be chosen?

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Probability and Nonprobability Samples

Probability Sample Simple random sample Every member of the population has an equal chance of selection Stratified random sample The population is divided into mutually exclusive groups (such as age groups), and random samples are drawn from each group The population is divided into mutually exclusive groups (such as city blocks), and the researcher draws a sample of the groups to interview

Cluster (area) sample

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Probability and Nonprobability Samples

Nonprobability Sample Convenience sample The researcher selects the most accessible population members The researcher selects population members who are good prospects for accurate information

Judgment sample

Quota sample

The researcher finds and interviews a prescribed number of people in each of several categories

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Marketing Research System

Contact Methods

Mail questionnaire Telephone Interview Personal interviewing Online interview

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Marketing Research System

Step 3: Collect the Information Step 4: Analyze the Information Step 5: Present the Findings Step 6: Make the Decision

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Seven characteristics of good marketing research

Scientific method Research creativity Multiple methods Interdependence of models and data Value and cost of information Healthy skepticism Ethical marketing

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Overcoming barriers to the use of marketing research

A narrow conception of the research Uneven caliber of researchers Poor framing of the problem Late and occasionally erroneous findings Personally and presentational differences

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Measuring marketing productivity

Marketing Metrics is the set of measures that helps firms to quantify, compare, and interpret their marketing performance.

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Table 4.4 Marketing Metrics

External

Internal

Awareness Market share Relative price Number of complaints Customer satisfaction Distribution Total number of customers Loyalty

Awareness of goals Commitment to goals Active support Resource adequacy Staffing levels Desire to learn Willingness to change Freedom to fail Autonomy

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Marketing Dashboards

A customer-performance scorecard records how well the company is doing year after year on customer-based measures. A stakeholder-performance scorecard tracks the satisfaction of various constituencies who have a critical interest in and impact on the companys performance including employees, suppliers, banks, distributors, retailers, and stockholders.

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Table 4.5 Sample Customer-Performance Scorecard Measures % of new customers to average # % of lost customers to average # % of win-back customers to average # % of customers in various levels of satisfaction % of customers who would repurchase % of target market members with brand recall % of customers who say brand is most preferred
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 4-20

Measuring Marketing Plan Performance

Sales Analysis Market share analysis Marketing expense to sales analysis Financial analysis

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Marketing profitability Analysis

Identifying functional expenses Assigning functional expenses to marketing Preparing a profit-and-loss statement for each marketing entity

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What is Marketing-Mix Modeling?

Marketing-mix models analyze data from a variety of sources, such as retailer scanner data, company shipment data, pricing, media, and promotion spending data, to understand more precisely the effects of specific marketing activities.

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 4-23

Forecasting and Demand Measurement

One major reason to conduct MR is to identify marketing opportunities/ measure and forecast the size/ growth and profit potential etc.
Market

Demand: total volume for the product that would be bought be defined customer group. Market Forecast: marketing expenditure of industry will actually occur. Market Potential: expect market demand Company Demand: company estimated share of market demand Company Sales Forecast: expected company sales based on a chosen marketing plan 1-24

The measures of Market Demand

Potential market Available market Target market Penetrated market

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Forecasting and Demand Measurement

Estimating Current Demand

Total

Market Potential Area Market Potential (for company)

Estimating Future Demand

Survey

of buyers intention

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